Wednesday September 04,2013 : LADBROKES MAKES AUSTRALIAN ONLINE GAMBLING ACQUISITION
UK betting group buys Aussie sports betting operator
The British online and land betting group Ladbrokes has announced its agreement to acquire Australian sports betting operator Gaming Investments Pty Ltd for an initial consideration of A$22.5 million, approximately GBP 13 million plus an earnout payable at the end of 3 years which is based on the EBITDA for Ladbrokes Australia for the year ending 30 June 2016.
Gaming Investments is a fast growing online sports betting business that includes Bookmaker.com.au Pty Ltd, operator of the online bookmaker Bookmaker.com.au and Panda Gaming Pty Ltd, operator of an extensive racing and sports focused affiliate network in Australia.
The acquisition, expected to complete this week, will see Ladbrokes acquire GIPL under its newly formed Australian arm ‘Ladbrokes Australia'.
Key highlights of the agreement include:
* Extends Ladbrokes global reach, providing a low cost entry into the regulated and growing Australian sports betting market
* Launched in February 2012, Bookmaker.com.au achieved circa A$400 million in amounts staked for the year to 30 June 2013. Led by founder and CEO Dean Shannon, the business has a strong senior management team and skilled technology operation with extensive experience in the sector. As shareholders, the senior management team are highly incentivised to deliver future growth
* Includes ownership of an independently developed betting software platform created specifically for the Australian market with innovative product features, integrated with a tailored affiliate platform, a mobile platform and a number of mobile apps
* The acquired assets include an extensive network of racing and sports betting affiliate sites in Australia which has helped drive efficient cost per acquisition
* A new website – Ladbrokes.com.au launches today, and will be further developed utilising Ladbrokes extensive range of sports betting markets
* Ladbrokes Australia is expected to make a small profit in the year ending 31 December 2014
Commenting on the acquisition, Richard Glynn, Ladbrokes' CEO, said:
"The acquisition of this fast growing business represents an excellent opportunity for Ladbrokes to establish a strong presence in Australia, in line with our strategy to extend geographic reach to key regulated markets. At launch Ladbrokes Australia will have a highly experienced management team who are strongly incentivised to achieve further customer and revenue growth over the coming years."
Glynn said that Ladbrokes Australia will be overseen by Damian Cope, Ladbrokes international and group strategy director.
GIPL's operations will continue to be based in Brisbane under the leadership of founder and CEO Dean Shannon, a highly experienced online gaming entrepreneur. The senior management team will be retained.
Ladbrokes will be the primary brand for the business with existing brands continuing where appropriate. Positioning itself as a fun and modern betting brand, an active marketing campaign will be launched shortly focusing on the Spring Racing Carnival which encompasses a 65-day racing programme throughout the state of Victoria, culminating in the 2013 Melbourne Cup.